Innovation

There will be no stop point to innovate and increase the quality for FFI in order to continue providing the best and quality dairy products to Indonesian families.

The Dairy Development Program (DDP) is one of FFI's commitment in helping farmers, to improve the quality of local fresh milk. Through several education and training programs, FFI seeks to help farmers to produce fresh milk in accordance with prescribed standards.

FFI also support Indonesian dairy farmers by increasing their capabilities through the Farmer2Farmer Program (F2F Program) where farmers are educated to carry out good animal husbandry governance and management.

FFI also introduce Digital Milk Collection Point (MCP) with the aims to keep the number of Total Plate Count (TPC) or bacteria contained in milk as low as possible. The lower the value of TPC contained in fresh milk, the higher the quality. With this system, farmers will get a fair price of milk and in accordance with the quality of milk produced.

Inspiration

This innovation inspired us in creating better life by doing CSR that embedded and integrated with company's operation that will lead to triple wins; win for company, win for supplier (especially farmers), and win for society (consumers and customers).

Based on the interview, the income of farmers can improve around 10% to 20% (higher than inflation rate of Indonesia) due to this program. The engagement between Frisian Flag field team who educate the farmers with the target farmers also increase and make brand awareness and loyalty increase.

Overall impact

The Impact of the innovation as mention in the beginning in the innovation overview can improve the milk production. FFI partnered with KPBS Pangalengan to establish five MCPs intended for dairy farmers in Pangalengan, namely MCP Los Cimaung, MCP Warnasari, MCP Cipanas, MCP Citere, and MCP Mekar Mulya. Until now, a total of 806 dairy farmers have been facilitated by the five MCPs, which are equipped with a digital barcode system that will help dairy farmers to get a valid assessment for fair milk pricing. After dairy farmers bring their milk to MCP, the digital system at MCP will calculate the Total Plate Count (TPC) or the number of bacteria contained in fresh milk. The lower the TPC number, the higher the quality of fresh milk and milk will be valued higher. This digital system that is still relatively new in Indonesia, implemented at MCP, will also make it easier for dairy farmers to get digital access to their milk data, including analysis of TPC data and composition of milk. The digital barcode system is also expected to avoid human error in entering data and reduce paper waste.

The income of the farmers also increase by 10% to 20% since the better quality will increase the price and the higher production with better quality will lead improvement of total income.

Business benefit

All the initiatives taken by Frisian Flag Indonesia actually have long-term commitment to improve the welfare of dairy farmers in Indonesia, where in other side to provide high quality raw materials for their product which needed by Indonesian market.

The establishment of MCP can help increase the knowledge and experience of dairy farmers. FFI's digital system will allow data on TPC values ​​of milk produced by each farmer to be closely monitored and stored for the learning process and experience of farmers. If they can reduce the amount of bacteria in the fresh milk they produce, then the price can be even higher.

With the all program from FFI, now farmers whose joined the program and implemented it to their farmer, has managed to increase their income in average around 10% up to 20%.

Social and environmental benefit

The innovation provides social and Environment benefits:

1. FFI has helped the supplier to be professional and capable businessman.

2. This will have positive social and economic impact in the form of reduced unemployment, increase prosperity, and at the end it will improve the welfare of society as a whole.

3. This will have positive impact to the Environment such as the establishment of clean and healthy Agricultural, profitable and sustainable business that attract young people to participate more.

Interviews

Akhmad Sawaldi, Dairy Development Manager

Akhmad Sawaldi, Dairy Development Manager